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Question No 21 Chapter No 16
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Recertification after the Preparation of Trail Balance but before Final Account
Single Account Errors
21. The trial balance of Royal Enterprises did not agree on 31-3-2018. the different was put into the suspense account. Subsequently, the following errors were discovered you are required to rectify the errors
- Interest received Rs 670 was wrongly credited to commission account Ts 607
- A sum of Rs 880 paid to M.S. Gill as credited to P.S. Gill Rs 808
- A sale of Rs 6,000 paid to Partap Singh was recorded in the purchases book with Rs 16,000however, Partap Singh was correctly debited
- Goods of Rs 1,400 distributed as free samples debited to drawings account Rs 1,040
- Plant purchases for Rs 3,800 and installation expenses incurred Rs 200 were debited to purchased account Rs 3,800
- Discount allowed by Gautam RS 250 entered twice in cash book once in the discount column RS 150 and second time in cash column Rs 250
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The solution of Question No 21 Chapter No 16:-
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| (a) | Commission A/c | Dr. | 607 | ||
| Suspense A/c | Dr. | 63 | |||
| To Interest A/c | 670 | ||||
| (Being interest received Rs 670 wrongly credited to commission as Rs 607 now corded.) | |||||
| (b) | M.S Gill A/c | Dr. | 880 | ||
| P.S. Gill A/c | Dr. | 808 | |||
| To Suspense A/c | 1,688 | ||||
| (Being amount paid to M.S Gill wrongly credited to P.S gill now corded.) | |||||
| (c) | Suspense A/c | Dr. | 22,000 | ||
| To Sale A/c | 6,000 | ||||
| To Purchases A/c | 16,000 | ||||
| (Being sale of Rs 6,000 wrongly traded as the purchase of Rs 16,000now corrected ) | |||||
| (d) | Advertisement A/c | Dr. | 1,400 | ||
| To Drawings A/c | 1,040 | ||||
| To Suspense A/c | 360 | ||||
| (Being free samples, wrongly debited to drawings account now corrected ) | |||||
| (e) | Plant A/c | Dr. | 4,000 | ||
| To Purchases A/c | 3,800 | ||||
| To Suspense A/c | 200 | ||||
| (Being plant purchased recorded in purchases A/c now corrected ) | |||||
| (f) | Gautam A/c | Dr. | 650 | ||
| To Discount allowed A/c | 150 | ||||
| To Discount received A/c | 250 | ||||
| To Cash A/c | 250 | ||||
| (Being discount received wrongly recorded in discount and cash now corrected ) | |||||
Error Rectification in accounting – Explanation with examples
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 – Theory Base of Accounting
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Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
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Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
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Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)